Property tax reconsideration (Toronto - Ontario)

[flyingsquirrel]

I just purchased a commercial property and am having negative cash flow even without mortgage.

I will have to have the property tax lowered with the income method.

I came across The Canadian Justice Review Board from the internet.

http://www.canadianjusticereviewboard.ca/home.htm

Did anyone has experience with this? Are they scam?



Also, did anyone have any experience with reconsideration with MPAC?

Are they a total waste of time? Should I go for the Assessment Review Board (ARB) right away?

 

[brentdavies]

Negative cash flow before debt service. Was this property a steal for the you or the seller?



The Canadian justice review is only an advisory board. Just like student legal services. Cheap free advice. You get what you pay for.



I cannot comment on your local town, but will comment what I would do in Edmonton, where I work. If my taxes were too high, first you appleal the property assessements. This can only be done in the spring. There are several professionial firms in our area that do appeals and work on contingency basis. They don't get paid unless they win. That a win- win in my view.



There also 2 appeals available after inital appleal process.



I would suggest you get in contact with your local apartment association, as they would know the names of the some of property tax appeal experts in your local area.

 

[flyingsquirrel]

It was a steal for me because they are having much worse negative cash flow.

I would say I have a slightly negative cash flow.

This is a unit inside a relatively new mall.

Thanks for the suggestion.

 

[flyingsquirrel]

I called the toronto apartment association.

They want to charge me $325 to become a member before they would like to give me a contact!

 

[housingrental]

If you are going to be a landlord in the area, the cost will be well worth it.

[quote user=flyingsquirrel]I called the toronto apartment association.

They want to charge me $325 to become a member before they would like to give me a contact!

 

[Thomas Beyer]

[quote user=flyingsquirrel]I just purchased a commercial property and am having negative cash flow even without mortgage.

I will have to have the property tax lowered with the income method.
Did you pay too much ?



Are the rents too low ?



You can appeal the tax assessment, based on your purchase price. So if you paid X (presumably lower than the assessment) then they will consider it. There are certain deadlines for this tax assessment appeal.

 

[flyingsquirrel]

Yes. I am going to appeal to MPAC.

Hopefully, I can get it back to positive cash flow.But I heard that MPAC is not too nice.